Regret Expressed Over the Passage of the Martial Arts and Yellow Envelope Act Amendment Bill

"The President Must Immediately Exercise the Veto"

[Asia Economy Reporter Park Sun-mi] The Korea International Trade Association (KITA) has expressed deep regret over the passage of the amendment to the Labor Union and Labor Relations Adjustment Act (commonly known as the Yellow Envelope Act, hereinafter ‘Labor Union Act’) by the National Assembly’s Environment and Labor Committee.

On the 21st, KITA stated in a press release, "The amendment to the Labor Union Act indiscriminately expands the concepts of employers and labor disputes, causing confusion in labor-management relations, and by exempting employers from liability for damages caused by illegal acts of labor unions, it encourages illegal actions by unions, which may further escalate conflicts at workplaces." They added, "Such legislation is unprecedented worldwide and clearly wrong."

They evaluated that over the past few years, excessive legislation and regulatory expansion?such as the introduction of the 52-hour workweek and the enforcement of the Serious Accident Punishment Act?have constrained corporate investment and activities, leading to the collapse of our export industry base. Due to excessive corporate regulations causing companies to relocate overseas, our global export market share declined from 3.2% in 2017 to 2.85% in 2019, and further dropped to 2.83% last year, resulting in the loss of approximately 500,000 quality jobs.

KITA explained, "Although this legislation is being promoted under the pretext of protecting workers, by exempting illegal labor disputes in industrial sites, it will encourage the relocation of our companies overseas, ultimately reducing workers’ jobs and lowering their quality of life." They pointed out that bills that would actually create jobs, such as the Restriction of Special Taxation Act?which includes tax reductions for semiconductor facility investment and research and development?and the amendment to the Labor Standards Act allowing additional extended work hours for workplaces with fewer than 30 employees, are still pending in the National Assembly.

Furthermore, KITA stated, "The National Assembly should no longer pass the Labor Union Act, which takes away workers’ jobs and hinders industrial development," and added, "Nevertheless, if this bill passes the plenary session of the National Assembly, the President should immediately exercise the veto power."